PowerCompute, formerly known as LM Funding America (NASDAQ:LMFA), said its second-quarter results reflected continued Bitcoin mining operations while the company began pursuing a new strategy centered on artificial intelligence infrastructure and high-performance computing hosting.
Chairman and Chief Executive Officer Bruce Rodgers said the company began expanding into AI infrastructure and HPC hosting in July, following its rebranding and Nasdaq ticker change to PWCM on July 22. The company controls 26 megawatts of energized power capacity across a 15-megawatt site in Calumet, Oklahoma, and an 11-megawatt site in Columbus, Mississippi.
Second-Quarter Financial Results
Total revenue was $2.1 million in the second quarter of 2026, essentially unchanged from the first quarter and up 9.8% from $1.9 million in the second quarter of 2025, Chief Financial Officer Richard Russell said. The year-over-year revenue increase reflected more miners operating and a lower mining difficulty rate, partly offset by a lower average Bitcoin price.
The company mined 27.9 Bitcoin during the quarter, compared with 26.1 Bitcoin in the first quarter and 18.4 Bitcoin a year earlier. PowerCompute reported a mining margin of 29%, up from 24.1% in the preceding quarter but down from 41% in the second quarter of 2025.
Russell said the quarter’s mining margin benefited from $145,000 in curtailment and energy sales, recognized as a reduction in cost of revenue. The average Bitcoin price declined to about $72,000 in the second quarter from approximately $75,700 in the first quarter and $98,000 in the year-earlier period.
PowerCompute reported a net loss of approximately $4.6 million and a core EBITDA loss of $2.8 million for the second quarter. That compared with net income of $100,000 and core EBITDA income of $2.6 million in the second quarter of 2025.
The shift from the prior-year profit primarily reflected a $3 million loss on the fair value of digital assets and digital asset receivables, compared with a gain of about $3.8 million in the prior-year quarter. Russell also cited $460,000 in higher interest costs, primarily associated with imputed interest from the Galaxy loan, and $280,000 in increased digital mining cost of revenue.
Bitcoin Holdings and Debt Refinancing
As of June 3, PowerCompute had total assets of about $37.1 million, including 318 Bitcoin valued at approximately $18.6 million based on a Bitcoin price of $58,400. Cash totaled $900,000. Of the company’s Bitcoin holdings, 174 Bitcoin were held by Galaxy Digital as collateral.
Total liabilities were approximately $21.6 million, including $10.8 million under a Galaxy Digital matched-currency loan and $8.5 million of other notes payable, of which $1.9 million was long term.
After the quarter ended, the company refinanced and consolidated three debt facilities totaling $18 million through Arch Lending. The Arch facility is secured by 307 Bitcoin from the company’s treasury and replaced an $11 million Galaxy Digital loan and $7 million in loans used to acquire the Oklahoma and Mississippi facilities.
Russell said that on Aug. 3, PowerCompute entered into a Bitcoin-backed facility with a revolving 30-day term and a 2% annual percentage rate. The debt that was retired carried a blended annual rate of approximately 13%, according to the company. However, the Arch facility is shorter in duration than the debt it replaced, and its availability and rate are subject to renewal.
Rodgers said the refinancing reduced interest expense and allows the company to retain Bitcoin rather than sell it, although substantially all of its Bitcoin is pledged as collateral.
AI Hosting Initiative Begins With Single GPU Pilot
PowerCompute acquired its first graphics processing unit in July and listed its capacity on the Vast.ai Compute marketplace. Rodgers described the deployment as a proof of concept intended to develop operational experience and assess demand.
The pilot did not generate revenue during the second quarter, and Rodgers said third-quarter revenue from it would be immaterial. The company is also marketing approximately four megawatts of available energized capacity in Columbus for colocation and hosting. The full 11-megawatt Mississippi site could be converted to HPC use if the company secures an appropriate customer commitment, he said.
The company is evaluating modular, containerized data-center solutions that could convert its power infrastructure into GPU compute capacity. During the question-and-answer session, Rodgers said potential providers of such equipment have sophisticated arrangements requiring nondisclosure agreements and that financing partners may be available for projects, but he said PowerCompute had not reached material developments.
PowerCompute also is in preliminary discussions with its Oklahoma power provider about a possible expansion and continues to evaluate other low-cost power sites. Rodgers said the company could not predict whether the Oklahoma discussions would lead to an agreement.
Longer-Term Opportunity Remains Preliminary
Rodgers said a full build-out of the company’s existing 26 megawatts could represent an illustrative annual revenue opportunity of $20 million to $50 million. He emphasized that the estimate is not guidance or a forecast and would require additional capital, signed customer contracts and multiyear execution.
In response to an analyst question, Rodgers said the company has begun discussions with potential counterparties for colocation-style arrangements but has not announced any definitive agreements.
Rodgers said PowerCompute’s near-term focus is to learn from the small Oklahoma GPU deployment, assess actual demand and determine how quickly it may convert additional capacity from Bitcoin mining to AI and HPC operations. He also said liquidity management remains a near-term priority.
About LM Funding America (NASDAQ:LMFA)
LM Funding America, Inc, headquartered in Miami, Florida, is a specialty finance company that provides retail installment contracts to subprime borrowers. The company originates, acquires, and manages motor vehicle retail financing through a network of franchised and independent automobile dealerships across the United States. LM Funding America holds and services its loan portfolio through its wholly owned subsidiary, LM Funding America Service Corp., and offers floorplan financing to new and used vehicle dealers through LM Funding Floorplan LLC.
Established in 2013, LM Funding America completed its initial public offering on the Nasdaq Stock Market in 2015, enabling the company to expand its lending operations and geographic presence.
